And for the 2nd time.....

[Penfold42]

OK her we go -

I set myself a target....to make the gravy train roll! Is that what we all try to do... :shrug:

Made a loss in the 1st year :o
2nd year made a profit....Yay! :D
3rd year - so far i've done what is needed and more - thanks to other people. :)

So what keep's people going? I know i set my stall out that after 3 years if no profit.....bye,bye!

It looks like we are here for another year....:D
Did anyone else have a plan? or did they fly their pants?

Please can we keep this without price ......don't want to change this into a money thread. :)

[rob1963]

When I started out in the early 80's there was no plan, as it was just a hobby then.

When I went full time 5 years ago, one plan was to earn more each year than the previous year...which I've just about managed, and the other was to earn enough to live on, which I also managed.

[Leicester Ben]

When I first started at Uni I spend xxx on kit, with the intention that 10 gigs at yyy price would break me even and that anything after that would have been a bonus and paid my way through Uni.

I never really looked back after that with profits getting bigger every year!

[Pe7e]

It looks like we are here for another year....:D
Did anyone else have a plan? or did they fly their pants?


I've been working in my own businesses for most of my working life, and for the majority of that time, I have flown by the seat of my pants, with little formal planning. Overall the strategy has worked very well, but it has on a couple of occasions, resulted in a rapid and painful return to earth, followed by prolonged periods of wound licking. Looking back I would do pretty much the same again, but without the naive trust I placed in certain people. In business, your best friend is your solicitor, and they should be consulted before entering into a business arrangement with others. The majority of the bad experiences were the result of events beyond my control, which couldn't have realistically been foreseen, ie a major creditors (PLC) bankruptcy. I can't see how having a business plan wouldn't have stopped that. For the most part, I think 'start up' business plans, are little more than a mixture of guess work and optimism. Writing something down, doesn't make it happen, but a little market research is worth it's weight in gold.

[Excalibur]

Please can we keep this without price ......don't want to change this into a money thread. :)

Well you started it! :eek:

I'm constantly amazed that so many of you adopt this mercenary and materialistic attitude to what we do. :eek: :confused: I thought that our reward was the sea of smiling faces at the end of each gig, cheering and chanting " one more, one more" . Getting paid for what we love is a bonus, and breaking even financially is the Holy Grail. Theoretically achievable, but never yet seen.






( It's a joke, in case any of you don't get it. I've run out of serious tablets till the wife gets back from work. :D :D :D :D :D :D :D :D )

[Vectis]

When I started out I was a teen living at home, and DJing allowed me to give up the usual pocket-money-earning jobs like my paper round and working in the corner shop. It gave me some independence from parents and let me, in due course, build up a deposit for my own place, buy a car etc..

Over the years it's allowed me to stay solvent and one notch above friends and colleagues of a similar age in terms of living standards - ie bigger house, nicer area, more holidays - not by a very much, but enough to be noticeable - which has benefitted my family life somewhat.

Last December I took redundancy from my main (very well paid) job rather than relocate from this lovely place with enough of a pay off to live by the same standard for about a year. I vowed that before the pot ran dry, I'd be earning enough to keep us afloat, and within 3 years would be back to the same level as previously.

So far I've burned about half of the pot (but had a stonking holiday, replaced a car and killed a large-ish unsecured debt) and for the last three months haven't dipped into it at all. I'm now at the treading water stage - working silly hours admittedly - and I'm determined that the only way from here is up.

[NKR]

I think you need to have a plan and targets as that gives you a demonstrable bench mark to aim for. That is what can help drive a business.

My DJ'ing is a hobby, but I insist on regular meetings with my business partner and minutes so targets can be actioned.

We have been at this for about 2 and a half years now and

The first 6 months were spend faffing around and any work put towards kit payments. I classed year 1 as Jan 08 onwards.
Year 1 - broke even and paid off most of the kit I had personally dipped into my savings to buy.
Year 2 - looks like we will make a good profit for a hobby even after significant kit purchases.
Year 3 - Yet to come, but more kit to purchase to improve the show. Business initiative for year 3 is to have our web site up and running to increase market exposure. Attend showcases to increase exposure of the vocal offer.
Bookings for year 3 (2010) are already showing okay. I want to see a 15 to 20% growth in turnover year in year 3
Year 4 - Should start to look like clear funds as kit purchases are kept to a minimum. Another 15 to 20% growth in turnover on year 3. As much of the kit should now be looking after itself to look at direct end user marketing and reciprocal service introductions.
Year 5 - Target is to maintain a year on year turnover of between 17.5 and 20k and keep operating costs to a maximum of 30% of turnover.

Thats my current position and business target.

You need to have a plan and it needs to stay adaptable as markets move. Flexibility is the key to business success in my opinion as there is never one size fits all.

[Creature]

took me 4 years to make a profit the last 2 years been doing it full time with some comparing chucked in. last year only made 800.00 prifit but this year gonna be just under 4k with current bookings :):)

[Pe7e]

Business initiative for year 3 is to have our web site up and running to increase market exposure.

Flexibility is the key to business success in my opinion as there is never one size fits all.

Why on earth have you given your most powerful marketing such a low priority? It takes a considerable ammount of time for websites to be indexed by Google, and start appearing in prominent positions in search results, the sooner you establish one, the better. I totally agree with the last statement though,

[Dynamic Entertainment]

My plan is tyo make a loss for the first 3 years...and get a nice tidy sum back of the taxman because of it.

TRhen make a profit in the 4th year.

Igves me chance to get the business where i want it equipment wise etc. This forum threw a spanner in there tho, giving me ideas legft right and centre. :)

[StarZSoundS]

Why on earth have you given your most powerful marketing such a low priority? It takes a considerable ammount of time for websites to be indexed by Google, and start appearing in prominent positions in search results, the sooner you establish one, the better. I totally agree with the last statement though,



Surely the most powerful marketing tool is live exposure and repeat business....

From someone with no website or plans for one....


But seems to be pretty much in demand???!!

[mark karaoke]

started as a hobby about 8 years ago --- took the plunge and left a job to go f/t in july and so far seems to be working out,making a living(just)

[Danno13]

I need to either cut down how much profit I re-invest in the business, or make more profit to start with, so that it doesn't matter as much.

I doubled (+a bit more) my turnover between 07/08 and 08/09, with profit increasing by about 50%. My running costs have stayed pretty constant (in % terms) over the last three years, so I know how much I need to turnover to generate the wage I want. Though, as I offer lots of different services, it would be handy to know which are more profitable, must try and work that out someday!

So far in 09/10 I'm up 20% on turnover, but 34% on profit (based on this year so far vs the whole of last year) That said, I'm a couple of weeks behind on my accounts.


Year 5 - Target is to maintain a year on year turnover of between 17.5 and 20k and keep operating costs to a maximum of 30% of turnover.

I think you'd be doing extremely well, if you were to manage that. It's closer to the other way round for me!

[NKR]

Why on earth have you given your most powerful marketing such a low priority? It takes a considerable ammount of time for websites to be indexed by Google, and start appearing in prominent positions in search results, the sooner you establish one, the better. I totally agree with the last statement though,

It's essentially a hobby. I was not prepared to fund a web site out of my own pocket. Therefore we had to make enough money to pay for it.

I don't want masses of enquiries - We will have done 56 jobs this year with no marketing. I am looking to improve the quality over the quantity.

I know it takes time to index, but I have plenty of that.




I think you'd be doing extremely well, if you were to manage that. It's closer to the other way round for me!

Operating costs of £5k should be easy. Kit servicing, music and fuel. Thats about it. I use a trailer and my wifes 4x4.

[Pe7e]

Surely the most powerful marketing tool is live exposure and repeat business....

From someone with no website or plans for one....


But seems to be pretty much in demand???!!

Yes repeat business and word of mouth are probably the best, apart from that, the vast majority of my trade comes over the web, it can't be ignored, unless of course, you have more work comming in, than you need/want.

[Danno13]

Operating costs of £5k should be easy. Kit servicing, music and fuel. Thats about it. I use a trailer and my wifes 4x4.

We'll talk about this again in 5 years then :D

[NKR]

We'll talk about this again in 5 years then :D

3 years time as we are starting year 3 of my action plan in Jan.

I think its achieavable.

[StarZSoundS]

Yes repeat business and word of mouth are probably the best, apart from that, the vast majority of my trade comes over the web, it can't be ignored, unless of course, you have more work comming in, than you need/want.

I'll bob onto Good Party if I get a free Fri/Sat............

How did you lot market your businesses 15 years ago when there was very little internet business....Repeat Business.....I bet??

Its still there:bang: :bang: :bang:

[andyw]

I'll bob onto Good Party if I get a free Fri/Sat............

How did you lot market your businesses 15 years ago when there was very little internet business....Repeat Business.....I bet??

Its still there:bang: :bang: :bang:

your right it is still there but a lot of people do their shopping online and shops are still there but feeling the effects of the internet and having to move with the times or close

[ppentertainments]

For me I had a good well paid job - however I did not enjoy it. I needed to match that wage (plus increases). So set myself off going part-time until I felt I could match that wage DJ'ing full time. 3 years was the plan before going full time but I did it in 2 with this being my first full year as a full-time DJ. I had been doing discos 'casually' for a number of years so had the basics to start off with.

I am slightly under my target this year, but it is my 1st year, and I still have the option of finding a part time job if needed. Actually thinking of trying out another venture on a part-time basis, but also have plans for the DJ'ing too so not sure where next year will lead.

If I made sensible purchases to begin with I am sure things would be a lot easier now, plus if I hadn't bought 2 cars this year, moving house next year .................:D :D :D